Welcome!

Log Management Authors: Dana Gardner, Pat Romanski, Elizabeth White, David H Deans, Carmen Gonzalez

Related Topics: IBM Cloud, Recurring Revenue, Log Management

IBM Cloud: Article

HP Paints Target on Its Back; IBM CEO Shoots Arrows

Instead Palmisano says he worries about Oracle, which is now likely to become the biggest threat to IBM

It's not everyday that the buttoned-down CEO of the buttoned-down IBM takes a highly public shot at a rival - however calculated - but Tuesday was a day to watch a master practitioner.

In an hour-long interview at a Wall Street Journal breakfast conference Sam Palmisano told all there that IBM would never in its wildest dreams have paid the $2.35 billion HP is proposing to pay for a joint like 3PAR or the $1.5 billion it's paying for ArcSight - it doesn't have to - but HP does because its ousted CEO Mark Hurd "cut out all the research and development."

"HP used to be a very inventive company," Palmisano tsked, but now he doesn't have to worry about it. It's a reseller. Hurd cut HP's R&D budget from $3.6 billion to $2.8 billion thereby making it weak and ineffectual. (Hurd loyalists say what Hurd actually did was can redundant R&D projects and focus the rest but the urban myth is easier to exploit. IBM spends $6 billion and you can bet that doesn't all come up roses either.)

Instead Palmisano says he worries about Oracle, which is now likely to become the biggest threat to IBM. "Oracle has cash flow and good margins. Oracle invests," he said. Oracle CEO Larry Ellison "has done a very good job."

Palmisano also waded into the discussion about the HP board's competence in handling Hurd's ouster and paying him $35 million in severance only to have him turn up literally days later at Oracle. "That is not good use of shareholder money," Palmisano said.

Palmisano evidently means to be around for IBM's showdown with Oracle. He said he has no intention of retiring next year when he turns 60 in the fashion of his immediate predecessor. "There is no formal policy....I'm not going anywhere." How certain, unlike HP.

IBM made an offensive move last week by offering Oracle and HP users a trade-in for new IBM Power servers, software and services on generous financing terms at a reduced budgetary crisis. The IBM boxes are supposed to be more open and powerful than the Oracle-Sun machines.

Apple can evidently rest easy. iPads aren't IBM's kind of innovation. "Rather than something that lets you watch television in another format, our scientists would rather do things that change the world."

More Stories By Maureen O'Gara

Maureen O'Gara the most read technology reporter for the past 20 years, is the Cloud Computing and Virtualization News Desk editor of SYS-CON Media. She is the publisher of famous "Billygrams" and the editor-in-chief of "Client/Server News" for more than a decade. One of the most respected technology reporters in the business, Maureen can be reached by email at maureen(at)sys-con.com or paperboy(at)g2news.com, and by phone at 516 759-7025. Twitter: @MaureenOGara

Comments (0)

Share your thoughts on this story.

Add your comment
You must be signed in to add a comment. Sign-in | Register

In accordance with our Comment Policy, we encourage comments that are on topic, relevant and to-the-point. We will remove comments that include profanity, personal attacks, racial slurs, threats of violence, or other inappropriate material that violates our Terms and Conditions, and will block users who make repeated violations. We ask all readers to expect diversity of opinion and to treat one another with dignity and respect.


IoT & Smart Cities Stories
"IBM is really all in on blockchain. We take a look at sort of the history of blockchain ledger technologies. It started out with bitcoin, Ethereum, and IBM evaluated these particular blockchain technologies and found they were anonymous and permissionless and that many companies were looking for permissioned blockchain," stated René Bostic, Technical VP of the IBM Cloud Unit in North America, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Conventi...
Founded in 2000, Chetu Inc. is a global provider of customized software development solutions and IT staff augmentation services for software technology providers. By providing clients with unparalleled niche technology expertise and industry experience, Chetu has become the premiere long-term, back-end software development partner for start-ups, SMBs, and Fortune 500 companies. Chetu is headquartered in Plantation, Florida, with thirteen offices throughout the U.S. and abroad.
René Bostic is the Technical VP of the IBM Cloud Unit in North America. Enjoying her career with IBM during the modern millennial technological era, she is an expert in cloud computing, DevOps and emerging cloud technologies such as Blockchain. Her strengths and core competencies include a proven record of accomplishments in consensus building at all levels to assess, plan, and implement enterprise and cloud computing solutions. René is a member of the Society of Women Engineers (SWE) and a m...
SYS-CON Events announced today that DatacenterDynamics has been named “Media Sponsor” of SYS-CON's 18th International Cloud Expo, which will take place on June 7–9, 2016, at the Javits Center in New York City, NY. DatacenterDynamics is a brand of DCD Group, a global B2B media and publishing company that develops products to help senior professionals in the world's most ICT dependent organizations make risk-based infrastructure and capacity decisions.
A valuable conference experience generates new contacts, sales leads, potential strategic partners and potential investors; helps gather competitive intelligence and even provides inspiration for new products and services. Conference Guru works with conference organizers to pass great deals to great conferences, helping you discover new conferences and increase your return on investment.
DXWorldEXPO LLC announced today that ICOHOLDER named "Media Sponsor" of Miami Blockchain Event by FinTechEXPO. ICOHOLDER gives detailed information and help the community to invest in the trusty projects. Miami Blockchain Event by FinTechEXPO has opened its Call for Papers. The two-day event will present 20 top Blockchain experts. All speaking inquiries which covers the following information can be submitted by email to [email protected] Miami Blockchain Event by FinTechEXPOalso offers sp...
Headquartered in Plainsboro, NJ, Synametrics Technologies has provided IT professionals and computer systems developers since 1997. Based on the success of their initial product offerings (WinSQL and DeltaCopy), the company continues to create and hone innovative products that help its customers get more from their computer applications, databases and infrastructure. To date, over one million users around the world have chosen Synametrics solutions to help power their accelerated business or per...
Poor data quality and analytics drive down business value. In fact, Gartner estimated that the average financial impact of poor data quality on organizations is $9.7 million per year. But bad data is much more than a cost center. By eroding trust in information, analytics and the business decisions based on these, it is a serious impediment to digital transformation.
@DevOpsSummit at Cloud Expo, taking place November 12-13 in New York City, NY, is co-located with 22nd international CloudEXPO | first international DXWorldEXPO and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time t...
When talking IoT we often focus on the devices, the sensors, the hardware itself. The new smart appliances, the new smart or self-driving cars (which are amalgamations of many ‘things'). When we are looking at the world of IoT, we should take a step back, look at the big picture. What value are these devices providing. IoT is not about the devices, its about the data consumed and generated. The devices are tools, mechanisms, conduits. This paper discusses the considerations when dealing with the...